Sears Spin-Off Begins Trading Today
Sears Hometown and Outlet Stores Inc. (NASDAQ: SHOS) began trading today following the close earlier this week of the rights offering from Sears Holdings Corp. (NASDAQ: SHLD). Shares were initially valued at $31 and have slipped a little in the…
Sears Holdings received a total of $446.5 million from the spin-off, $346.5 million from the rights offering and $100 million as a dividend payment from Sears Hometown prior to the separation. The payment from Sears Hometown was made from an “asset-backed senior secured revolving credit facility” with a total borrowing capacity of $250 million.
Next up for Sears Holding is likely to be a transaction involving a partial spin-off of the company’s Sears Canada division.
Shares of Sears Holding are trading down about 1.2% at $60.21 this morning in a 52-week range of $28.89 to $85.90.
Sears Hometown shares are trading down about 1.6% at $30.50 on light volume of just 55,000 shares.
Paul Ausick
Contact [email protected] for any questions or corrections.
Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.